Hong Kong — Shares in Chinese telecoms equipment maker ZTE collapsed 39% on Wednesday as trading in the company resumed after it reached a settlement with the US over its handling of a sanctions violation. Dealing in the firm was suspended in April after Washington said it had banned American companies from selling crucial hardware and software components to it for seven years. The decision came after US officials said ZTE had failed to take action against staff who were responsible for violating trade sanctions against Iran and North Korea. The company was fined $1.2bn last year for those violations. The move put the company’s future in doubt and it became a key issue in a wider trade spat between Washington and Beijing. But last week the two sides reached a deal to replace the sanctions with a $1bn penalty, plus another $400m in escrow to cover possible future violations. Shenzhen-based ZTE will also be required to change its entire board of directors and hire outside legal compli...

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